Restaurant Owners Look to Block Landmark Law for California Fast-Food Workers

Move would give more than 500K workers more power, protections
By Newser Editors and Wire Services
Posted Sep 5, 2022 1:20 PM CDT
Updated Sep 8, 2022 2:10 AM CDT
Newsom Signs Landmark Law for State's Fast-Food Workers
Fast-food workers and their supporters march past the state Capitol calling for passage of a bill to provide increased power to fast-food workers, in Sacramento, Calif., Tuesday, Aug. 16, 2022.   (AP Photo/Rich Pedroncelli)

Update: Restaurant owners moved Wednesday to at least temporarily block a nation-leading new California law giving more power to fast food workers, the AP reports. The owners want the state's voters to ultimately decide the law's fate. A coalition calling itself Protect Neighborhood Restaurants filed a referendum request with the state attorney general, the first step before the law's opponents can begin gathering signatures. If they get enough, the law that Gov. Gavin Newsom signed on Monday, Labor Day, wouldn't take effect unless it's supported by a majority of voters. The opponents would not immediately say if they are shooting for this November’s ballot or for the 2024 election, but 2024 is more likely, because to qualify for this November's ballot the opponents would have to gather more than 600,000 signatures within a few weeks. Our original story from Monday follows:

California Gov. Gavin Newsom on Monday signed a nation-leading measure giving more than a half-million fast-food workers more power and protections, despite the objections of restaurant owners who warned it would drive up consumers’ costs. The landmark law creates a 10-member Fast Food Council with equal numbers of workers' delegates and employers' representatives, along with two state officials, empowered to set minimum standards for wages, hours, and working conditions in California. Newsom said he was proud to sign the measure into law on Labor Day, the AP reports.

"California is committed to ensuring that the men and women who have helped build our world-class economy are able to share in the state's prosperity," he said in a statement. "Today's action gives hardworking fast food workers a stronger voice and seat at the table to set fair wages and critical health and safety standards across the industry." The law caps minimum wage increases for fast-food workers at chains with more than 100 restaurants at $22 an hour next year, compared to the statewide minimum of $15.50 an hour, with cost-of--living increases thereafter. The state legislature approved the measure on Aug. 29. Debate split along party lines, with Republicans opposed.

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Sen. Brian Dahle, the Republican nominee for governor in the November election, had called it "a steppingstone to unionize all these workers." Supporters had said they hoped the measure would inspire similar efforts elsewhere. Restaurant owners and franchisers cited an analysis they commissioned by the UC Riverside Center for Economic Forecast and Development saying that the legislation would increase consumers' costs.

(More California stories.)

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